The rand was softer in afternoon trade on Tuesday as the euro was sold off after Greece failed to form a coalition government following indecisive elections on May 6.
"The $1.28 euro support level crumbled after the coalition talks failed. That pulled the rand with it," a local trader said.
At 15:40 local time the rand was bid at R8.2308 to the dollar from Monday's close of R8.1983, Friday's close of R8.0965, Thursday's close of R8.0236 and Wednesday's close of R7.9993. It was bid at R10.5252 to the euro from R10.5146 before, and at R13.1839 against sterling from R13.1855 previously. Prior to Friday, the rand was last above R13 per sterling on December 16 2011.
The euro was bid at US$1.2791 from Monday's close of $1.2828, Friday's close of $1.2893 and Thursday's close of $1.2935.
Dow Jones Newswires reported that Greece's president admitted defeat on Tuesday in his talks with party leaders to form a coalition government and said the country would hold new elections.
After discussions with the heads of Greece's five largest political parties, Greek President Karolos Papoulias said a meeting would be held Wednesday at 10:00 GMT on forming a caretaker government ahead of the fresh vote. No date has been set but the vote is widely expected to be held mid-June.
"The cost to Greece, the cost to Europe and the cost to the entire global economy may still be enough to cause Greek politicians and European politicians to pause before they pull the trigger on a Greek exit," Charles Dallara, the head of the Institute of International Finance who negotiated part of the debt rescue for Greece, said.
Bonds off best levels as rand weakens
South African bonds were off the session's best levels but remained in firm territory on Tuesday afternoon.
At 15:27, the benchmark R157 bond was trading at 6.490 percent from Monday's close of 6.500 percent. The R207 was bid at 7.690 percent and offered at 7.665 percent from a previous close of 7.695 percent and the R186 was trading at 8.360 percent from its close of 8.415 percent.